Lupaka Gold has received a favourable ruling from an international Arbitral Tribunal under the International Centre for Settlement of Investment Disputes (ICSID) in its dispute with Peru.
The Tribunal’s decision mandates that Peru compensate Lupaka approximately $65m for breaches of the Free Trade Agreement between Canada and Peru. This ruling relates to Lupaka’s investment in the Invicta Gold Project located in Peru’s Huaura Province.
This settlement includes $40.4m in compensation alongside interest accrued at varying rates depending on specific periods, and reimbursement of arbitration costs amounting to over $4.2m.
Lupaka CEO Gordon Ellis said: “Receipt of the final award is exceptionally good news and a key step in our arbitration proceedings against the Republic of Peru. However, it does not necessarily mean that the company will recover the amounts awarded in the immediate future.
“We may have a few more hoops to jump through prior to the company actually receiving any cash.”
Lupaka stated that discussions are ongoing with legal advisers regarding future actions, and any forthcoming payments will prioritise its funding partner, Benchwalk.
The dispute originates from events dating back to 2018 when Lupaka’s subsidiary, Invicta Mining Corp (IMC), faced an illegal blockade by gunmen from the Parán community, halting operations at the Invicta Gold Project.
Despite securing community agreements and completing significant preparatory work for mining, IMC was obstructed from final inspection and operations due to opposition demanding exclusive benefits for Parán, contrary to initial agreements with other local communities.
This blockade led to financial losses for IMC as it defaulted on loans without generating revenue. Lupaka argued that the Peruvian government’s failure to intervene effectively resulted in this situation and initiated arbitration seeking over $100m in compensation.
Lupaka said that it continues to explore investment opportunities and hold properties in Southeast Oregon, US while evaluating new prospects globally.
